Textile Industries of Pakistan

[Muji.Iqbal]

We should also export to China. China has a population of 1.4 billion people. Thats a huge market.

 

[ghazi52]

.,.,.,

4th International Pakistan TEXPO kicking off in Karachi with largest Chinese delegation​

By Zafar Hussain
May 26, 2023

KARACHI, May 26 (Gwadar Pro)- Pakistan's 4th International Textile Exhibition kicked off in Karachi on Friday, attended by the largest Chinese delegation ever seen in the textile sector of Pakistan.

Pakistan’s Prime Minister Shehbaz Sharif inaugurated the exhibition, noting that textile is the backbone of Pakistan’s export and Pakistani manufacturing industry is growing rapidly which counts 60% of Pakistan export.

The Prime Minister further emphasized that Pakistan believes in merit and he hopes that international delegation can do many MoU & B2B cooperation. Pakistan's economy is on the rise, and foreign investment is a key factor in driving this growth.

The Trade Development Authority of Pakistan (TDAP) organized the 4th International Textile Exhibition (TEXPO2023) from 26 May to 28 May in Pakistan’s latest city Karachi, where more 260 Pakistani manufacturers participating.

Muhammad Irfan, commercial councilor Guangzhou, Consulate General of Pakistan said that the event is a huge success, with both Pakistani and Chinese businesses coming together to explore new opportunities and partnerships. The Chinese delegation was particularly impressed with Pakistan's potential as a hub for trade and investment in the region, and expressed their commitment to furthering economic ties between the two nations.

“Pakistan is quickly becoming a hotbed for foreign investment, with its strategic location, skilled workforce, and growing consumer market making it an attractive destination for businesses looking to expand their operations. “With events like TEXPO bringing together key players from both Pakistan and China, the country is poised to continue its upward trajectory and become an economic powerhouse in the region”, he added.

It is to be noted that more than 400 delegates from 60 countries participated in TEXPO, with around 100 Chinese enterprises participating.

 

[Muji.Iqbal]

.,.,.,

4th International Pakistan TEXPO kicking off in Karachi with largest Chinese delegation​

By Zafar Hussain
May 26, 2023

KARACHI, May 26 (Gwadar Pro)- Pakistan's 4th International Textile Exhibition kicked off in Karachi on Friday, attended by the largest Chinese delegation ever seen in the textile sector of Pakistan.

Pakistan’s Prime Minister Shehbaz Sharif inaugurated the exhibition, noting that textile is the backbone of Pakistan’s export and Pakistani manufacturing industry is growing rapidly which counts 60% of Pakistan export.

The Prime Minister further emphasized that Pakistan believes in merit and he hopes that international delegation can do many MoU & B2B cooperation. Pakistan's economy is on the rise, and foreign investment is a key factor in driving this growth.

The Trade Development Authority of Pakistan (TDAP) organized the 4th International Textile Exhibition (TEXPO2023) from 26 May to 28 May in Pakistan’s latest city Karachi, where more 260 Pakistani manufacturers participating.

Muhammad Irfan, commercial councilor Guangzhou, Consulate General of Pakistan said that the event is a huge success, with both Pakistani and Chinese businesses coming together to explore new opportunities and partnerships. The Chinese delegation was particularly impressed with Pakistan's potential as a hub for trade and investment in the region, and expressed their commitment to furthering economic ties between the two nations.

“Pakistan is quickly becoming a hotbed for foreign investment, with its strategic location, skilled workforce, and growing consumer market making it an attractive destination for businesses looking to expand their operations. “With events like TEXPO bringing together key players from both Pakistan and China, the country is poised to continue its upward trajectory and become an economic powerhouse in the region”, he added.

It is to be noted that more than 400 delegates from 60 countries participated in TEXPO, with around 100 Chinese enterprises participating.

One of the few industries doing well in Pakistan.

 

[ghazi52]

,..,,.

 

[ghazi52]

.,.,

Experts convene to unlock organic cotton potential​

APP
Sep 4, 2023

Leading agricultural scientists, academics, and experts from Pakistan recently convened at an online conference to recognise the significant potential the country holds in organic cotton production. The conference aimed to chart a course toward realising this potential, promoting growth excellence, and boosting foreign exchange earnings.

The event, titled the “2nd Annual SAWiE Conference on Organic Cotton Pakistan,” was hosted by SAWiE, in collaboration with Pakistan Central Cotton Committee (PCCC) and took place on August 31 at the Central Cotton Research Institute (CCRI) Multan, a CCRI spokesperson said on Saturday.

The conference focused on knowledge dissemination and sharing best practices.
Dr Yusuf Zafar, the former Chairman of PARC and CABI, underscored Pakistan’s vast potential in the organic cotton sector.

Referring to a Textile Exchange report, he stated, “Pakistan has the capacity to achieve a staggering 405% growth in organic cotton production.” He highlighted the need for collaborative efforts among stakeholders to realise this potential and align with international standards.

 

[ghazi52]

.,.,

Cotton production surges to over 5 million bales​

Amjad Mahmood
October 4, 2023

LAHORE: Cotton production by the end of September surpassed the total output of the crop recorded in the last season, reveals the data released by the Pakistan Cotton Ginners Association (PCGA).

However, there has been an abnormal difference between the crop statistics of the PCGA and Punjab agriculture authorities.

As per the PCGA figures cotton arrivals at ginning factories across the country reached 5.025 million bales by Sept 30, which is 71.15 per cent more when compared with 2.936m bales for the same period last year; rather it exceeds the total lint output of 5m bales last year.

Business Club Commodities’ Hasseb Ahmed says textile mills have so far purchased 4.179m bales against 2.319m bales last year, an increase of 80.2pc, whereas exporters have picked over 0.248m bales against just 4,900 bales last year. According to him, Fast Trade Commodities Services was prominent among the exporters.

PCGA, official data show big gap in Punjab’s output

The fortnightly flow was recorded at 1.091m bales as opposed to 0.749m bales during the same fortnight (Sept 15-30) last year.

Cotton Ginners Forum Chairman Ihsanul Haq attributes more than expected phutti arrivals at ginning units to haste in picking by the growers on fears of whitefly attack.

He says the pest attack and weather conditions have hit the cotton quality, particularly in Punjab, where so far 2.069m bales have arrived in ginning factories, registering an increase of 34pc over the same period last year.

Lint production in Sindh has been reported as 2.956m bales, which is 113pc more than the same period last year.

Wide gap in output data

The Punjab Crop Reporting Services (CRS) claims as of Sept 30 the province produced 3.366m bales, registering a 64pc increase over 2.047m bales produced in the same period last year.

A notification of the Punjab CRS issued on Sept 30 says the average cotton boll weight this season is estimated at 2.93g, 13.1pc more than last year’s average of 2.59g and thus the average per acre yield reported so far is 11.76 maunds as compared to 7.94 maunds last year.

Referring to the claim, Mr Haq says that a huge difference of around 1.2m bales in the PCGA and Punjab CRS data is unlikely. The Punjab government believes that some ginners are involved in “under-reporting” of cotton arrivals to avoid taxes, he says, adding that earlier the Punjab Agriculture Department (Extension) had claimed cultivation of cotton in the province at 4.8m acres, while the CRS report put the acreage as 3.5m acres but the report was not made public.

He says that the Punjab government had later collected cotton cultivation data through Suparco, a federal entity engaged in space sciences, but its report was also not made public.

 

[ghazi52]

.,.,.,

Pakistan’s textile exports plunge 12% year-on-year in September: APTMA​

• On a monthly basis, exports decrease nearly 8% in comparison to August

BR

Exports of Pakistan’s textile sector continued to maintain a downward trajectory, clocking in at $1.35 billion in September compared to $1.53 billion recorded in the same month of the previous year for a year-on-year decline of 12%, showed provisional data released by the All Pakistan Textile Mills Association (APTMA) on Wednesday.

Data showed the country’s textile exports in the first nine months of calendar year 2023 decreased by 18% to $11.90 billion, declining from $14.53 billion in the same period of 2022.

Pakistan’s textile exports are crucial making up for the bulk of the country’s exports. The year-on-year decline is concerning for the South Asian economy, which faces a shortage of foreign exchange.

Meanwhile, on a monthly basis, the textile exports declined by nearly 8%, as compared to $1.46 billion recorded in August.

Although forex reserves held by the State Bank of Pakistan (SBP) have improved, currently at $7.67 billion amid inflows from the International Monetary Fund (IMF) and bilateral partners including Saudi Arabia and UAE, reserves remain under pressure on account of external debt servicing.

Earlier, Minister for Commerce Dr Gohar Ejaz, who is also the patron-in-chief of APTMA, expressed his optimism for the textile sector, stating, “cotton arrivals crossing the five million bales mark on October 1, 2023, is a momentous achievement for Pakistan.

“This is even more than last full year’s figure of 4.9 mil. bales, which was a 34% YoY decline over the preceding year.

“This remarkable growth showcases the dedication and hard work of our farmers and the resilience of our cotton industry,” Gohar said on Wednesday.

 

[Ghessan]

We should also export to China. China has a population of 1.4 billion people. Thats a huge market.

China is feeding textile hungry countries world over. we have never been competitive enough to compete in Chinese market.
what we can export to them is only textile raw material which is also reduced to a low level over the years losing market to India and to their local production in particular, couldn't compete due to higher cost of production thanks to govt policies, hopeless cotton production, electricity rates.

 

[ghazi52]

.,.,.,

Current cotton crop conditions, production trends, and traceability​

Shahid Sattar | Dr Javed Hassan

The Punjab province, known as the largest cotton-producing region in Pakistan, has been grappling with a severe pest onslaught, with reports of whitefly, jassid, and mealybug infestations impacting cotton plant growth.

The damage caused by these pests has undoubtedly contributed to a decline in cotton yields. The cotton industry in South Punjab is facing challenges, but concerted efforts by all stakeholders give hope that the industry can rebound and contribute significantly to Pakistan’s cotton production in the coming season.

In these conditions it is essential to address the discrepancy in national cotton production figures mentioned in recent reports. While some estimates suggest a national output of 7.0 to 8.4 million bales which are far below the correct estimates, it is essential to consider the provincial contributions accurately.

Punjab alone is expected to produce between 6.8 to 7.0 million bales, falling significantly short of its target of 8.33 million bales. When combined with the cotton production of Sindh, which is projected to be around 3-3.5 million bales, the total national production is expected to exceed 10 million bales.

Thus, the figures suggesting a lower national production are misleading and require clarification. Accurate reporting and acknowledgment of the efforts made by farmers, government, and industry associations are vital to understanding the true state of the cotton crop.

During current season the Punjab Government embarked on a transformative journey to revive the cotton crop within the province, addressing the persistent challenges that had plagued it for years.

Their timely launched cotton sowing campaign, initiated well ahead of the previous year planting season, resulted in a remarkable 30% increase in cotton acreage.

This proactive approach allowed farmers to maximize their planting windows, kick starting the cotton-growing season on a robust note. Furthermore, the government’s dedicated agriculture extension staff played a pivotal role by offering guidance and support throughout the cotton cultivation process, covering aspects such as soil preparation, pest management, and cotton farming techniques.

These efforts, coupled with a focus on improving cultivation practices and responding urgently to pest infestations using drones and helicopters, have not only increased cotton yields but also stimulated economic growth in related sectors, highlighting the Punjab Government’s crucial role in the revival of cotton production in the province.

Despite the challenges faced by cotton farmers, it is noteworthy that both the Punjab Government and the All Pakistan Textile Mills Association (APTMA) together have taken proactive steps to address the situation. APTMA have provided effective pesticides to combat whitefly infestations, demonstrating their commitment to supporting the cotton industry.

Moreover, APTMA has played a crucial role in assisting cotton farmers through a dedicated team of experts. This team has been actively involved in pest scouting, providing weekly reports based on field observations, and offering recommendations to mitigate the impact of pests.

Additionally, APTMA’s team of agronomists and entomologists has collaborated with the Punjab government in working groups to ensure effective management of the cotton crop.

It is worth noting that there has been an increase in the area under cotton cultivation in Punjab this year, compared to the previous year. This expansion demonstrates the resilience of cotton farmers in the face of adversity and their determination to contribute to the cotton industry.

While the challenges posed by pest infestations and water shortages are significant, it is essential to acknowledge the efforts made by both the government and industry stakeholders to support cotton farmers.

With a substantial increase in cotton cultivation area and the proactive measures taken, there is reason to believe that the national cotton production for the 2023-24 season can surpass the estimates and reach around 10 million bales, with Punjab contributing 6.5-7 million bales and Sindh adding 3-3.5 million bales to the total output.

As the cotton industry in South Punjab grapples with the challenges of severe pest infestations and water shortages, it becomes increasingly evident that proactive measures are required to safeguard the cotton crop and ensure sustainable production in the region in next season. Crop zoning and innovative crop rotation patterns are two key strategies that hold the potential to significantly enhance cotton production and mitigate the impact of pests and water scarcity.

Crop zoning involves the careful allocation of specific crops to suitable geographical regions based on climate, soil conditions, and other relevant factors.

In the context of South Punjab’s cotton cultivation, implementing crop zoning can be instrumental in managing and preventing pest infestations. By identifying regions prone to specific pests, authorities can implement targeted pest management strategies.

This approach minimises the widespread use of pesticides and reduces the environmental impact. Efficient resource allocation, including water and pesticides, can be achieved when crops are grown in areas where they are most likely to thrive.

This reduces waste and enhances resource efficiency. Crop zoning helps farmers diversify their crops, reducing the risk associated with monoculture and making cotton crop more resilient to various challenges, including pests and climate variations.

Another critical aspect of sustainable cotton farming in South Punjab is the exploration of innovative crop rotation patterns. Traditionally, cotton-wheat cropping has been prevalent in the region.

However, alternative cropping patterns like cotton-canola rotation can offer numerous benefits like Crop rotation disrupts the life cycles of pests and diseases, making it harder for them to establish and thrive. Switching between cotton and canola can help break the cycle of cotton-specific pests, such as whitefly.

Different crops have varying nutrient requirements and impacts on soil health. A cotton-canola rotation can improve soil fertility and reduce the need for excessive fertilizer use.

Early sowing of cotton in the cotton-canola rotation pattern, as observed in some farms this year, can lead to higher yields. Cotton sown early in the season is less susceptible to certain pests and can benefit from optimal growing conditions.

The cotton industry in Pakistan also facing a formidable challenge: the underreporting of cotton production. This issue, estimated at around 10-15 percent of the total cotton output, significantly impacts various aspects of the industry.

Termed as “gol mall” this underreporting has far-reaching consequences, including economic losses, distorted production figures, and quality concerns. Several factors contribute to the underreporting of cotton production in Pakistan.

One major factor is the informal nature of many cotton transactions. When ginners sell their cotton directly to the traders without formal documentation, making it challenging to track the movement of cotton and ensure that all production is accurately reported.

Additionally, the lack of transparency in the cotton supply chain further exacerbates the issue, with limited access to price and market trend information. This lack of information can lead to farmers being underpaid for their cotton and ginners underreporting production to avoid different taxes.

It also has significant implications for the overall economy. First, sales tax is evaded on the underreported cotton and its byproducts, while that paid on other inputs for ginning and manufacturing of byproducts (such as energy) is fully refunded to the manufacturer.

This results in large losses to the exchequer and adds to the fiscal deficit. The resulting supply differential in the formal market also inflates cotton prices, and this effect trickles down to prices of cloth and RMG–making exports of these products less competitive in international markets.

Full value chain transparency is also of increasing importance to international buyers, and being unable to trace the source of raw materials further weighs down on the textile sector’s export competitiveness.

One promising solution to combat underreporting in Pakistan’s cotton industry is the establishment of a traceability system. A traceability system involves the tracking and documentation of cotton from its source through various stages of production and processing to the end product. Such a system offers numerous benefits, including: Accurate Reporting; where every bale of cotton is accounted for, eliminating underreporting issues.

It provides a transparent record of cotton production, from the field to the final product. Quality Assurance; A traceability system can monitor the quality of cotton at every stage, allowing for the identification of substandard cotton and facilitating quality improvements. Grade Transparency; Traceability enables more transparent and standardized grading of cotton, reducing disputes and ensuring fair compensation for farmers. Consumer Confidence; Traceability provides consumers with information about the origin and quality of cotton products, enhancing trust and demand for Pakistani cotton in both domestic and international markets.

Recognizing the importance of implementing a traceability mechanism, APTMA has proposed several projects aimed at establishing and promoting traceability systems within the cotton industry.

These initiatives are designed to address the multifaceted challenges faced by the cotton industry, including underreporting, quality issues, and grading discrepancies. Tackling the underreporting of cotton production in Pakistan is crucial for the sustainability and growth of the cotton industry.

The implementation of a traceability system offers a viable solution to this problem. By embracing traceability, Pakistan can not only enhance its cotton production figures but also bolster the quality of its cotton, reduce economic losses, and build confidence among consumers and international partners.

It is imperative that the cotton industry, the government, and other key stakeholders work collaboratively to implement and maintain an effective traceability system.

Policy maker stakeholders focusing on sufficient cotton for capacity utilization of the textile industry for export purposes. In tandem however industry’s input costs other than cotton also play a critical role. One of these “energy’ accounts for approximately 10% of the final cost of the exported products.

Energy costs currently included cross subsidies to other non-productive sectors. Energy costs get inflated and rates become double to their competing countries. Under these conditions Pakistan export products cannot compete and this will have a crippling impact on the demand and price for cotton as well as worsening balance of payments.

This aspect of the cotton value chain requires equal if not more attention of the policy makers if Pakistan is to progress in its agriculture, industry, employment and exports.

 

[ghazi52]

.,.,.

Cotton arrival surges 19.3% in first two weeks of Oct: PCGA​

BR

Cotton arrival in Pakistan witnessed a significant increase of 19.3% as of October 15 compared to September 30, showed the latest fortnightly data released by the Pakistan Cotton Ginner’s Association (PCGA) on Wednesday.

As per the report, total cotton arrival in Pakistan rose to 5.996 million bales compared to 5.025 million bales recorded on September 30, 2023, an increase of 0.971 million bales.

On a year-on-year basis, cotton arrival in surged by nearly 62%, when compared to 3.708 million bales registered on October 15, 2022.

Last year, flash floods in Pakistan devastated large swathes of agricultural land in the country, especially in Sindh and Balochistan, impacting cotton crop production, which witnessed a 34% YoY decline.

The improvement in cotton arrivals, an essential raw material for the textile sector, is a welcome development for cash-strapped Pakistan.

The country’s crucial textile sector, responsible for a majority of Pakistan’s exports, is also bearing the brunt of a plunge in demand and escalating economic woes.

Province-wise breakup

As per the PCGA data, cotton arrival reported a substantial increase from both Punjab and Sindh.

As of October 15, cotton arrival in Punjab clocked in at 2.543 million bales as compared to 2.069 million bales reported on September 30, 2023, an increase of 22.9%. On a yearly basis, cotton arrivals from Punjab jumped by 22.7%, as compared to 2.072 million bales clocked in during the same period last year.

Similarly, cotton arrival in Sindh was 3.453 million bales compared to 2.956 million bales recorded in September 30, an increase of 0.50 million bales or 16.8%. However, the YoY increase was more pronounced in Sindh, as cotton arrivals jumped by 111.2% as compared to 1.635 million bales registered in SPLY.

Last month, Caretaker Federal Minister for Commerce and Industries and Production, Dr Gohar Ejaz, who is also the patron-in-chief of APTMA, set an ambitious target of $25 billion in textile exports for the current financial year against the $16 billion target for the last fiscal year.

The minister also pledged a swift revival of all shuttered industries within the country, with a tight deadline of just one month.

 

[F86 Saber]

Not going to happen, there is a sharp decrease in apparel sales in the West due to inflation, home textile sales have also gone down significantly after Covid because apparently people bought too many bedsheets when they were staying at home. We might be able to export cotton and yarn to China but that will be devastating for our local finished goods industry. Also the devaluation of USD is not helping.

 

[Ghessan]

Not going to happen, there is a sharp decrease in apparel sales in the West due to inflation, home textile sales have also gone down significantly after Covid because apparently people bought too many bedsheets when they were staying at home. We might be able to export cotton and yarn to China but that will be devastating for our local finished goods industry. Also the devaluation of USD is not helping.

we are out of competition in yarn export to China. yarn range we used to export now cannot compete with their local yarn in price.

there is only one category left that we export to China which certainly has its demand limitations.

even our local demand for bed linen is low due to inflation besides several factories halt their operation.

we have good cotton crop this year, may expect some exports but in this day and age we are exporting raw material instead of value added goods.

we were busy pulling each other leg which we did to every sector and gradually out of competition, take hand knotted carpet as another example.

 

[ghazi52]

.,.,.
During the cotton marketing season, the race to procure white gold usually does not start too early, driven by a host of factors such as crop outlook, world prices, export orders, and carryover inventory. Historically, inventory building by the textile industry picks up in late October, peaking in December. Over the last 10 years, local cotton sold to textile industry by end of September averaged at 2.4 million bales, with cotton procurement by record procurement of 3.3 million bales in 2021. The same fiscal year (FY2021-22), Pakistan’s textile export earnings grew by 25 percent, reaching record $20 billion.

If correlations are everything, then industry watchers should be in for a surprise. According to data from Pakistan Cotton Ginners Association (PCGA), ginning factories in the country had sold up to 4.2 million bales of cotton to textile industry by the end of September 2023, the highest figure for at least all of last decade (and quite possibly, in country’s history)!

Aggressive inventory building by textile industry so early into the cotton marketing season can usually mean two things, first of which has already been discussed in this space last week. For more, read: “Cotton crop: over-estimated”, published by BR Research on October 20th, 2023). Quick recap: climate change and monsoon flooding has been gradually shifting cotton picking months earlier into the calendar year, and higher business volume during the Jul – Sep period is more likely reflective of early harvest, and not necessarily cotton crop performance breaking all records.

The second explanation? Low carryover inventory from the previous year, and heavy export order interests – just like 2021 – is leading to aggressive inventory building by textile industry early into the season, which explains the very high volume sold, as reported by PCGA. This would be great news for both industry and the economy, since 2021-22 turned out not only to be a good year for cotton crop, but also for record export performance.

But another thing happened that year. Aggressive and early buying by the industry drove the market mad, with cotton prices increasing by nearly Rs10,000 per maund or 71 percent between June 2021 and March 2022. Note that while the currency had remained remarkably stable during this period - range bound around Rs155 – world cotton prices also rose by nearly a dollar per kg (or 46 percent), led by post-lockdown commodity markets exuberance. That trend is now in reverse, with cotton prices plateauing in the global markets for much of the calendar year 2023 and declining in local currency terms.

So, why has aggressive buying by the industry not led to a rise in prices in the local market? Are farmers struggling to offload their bumper crop, and the mills taking advantage? Or has a slowdown in global prices turned local cotton into a buyers’ market? To understand what’s going on, we look towards trends in banking credit offtake for financing of cotton procurement.

 

[ghazi52]

.,.,.
Pakistan’s Cotton Arrivals have reached 6.79 million bales till October 31, 2023, reporting an 83.2 percent increase from 3.708 million bales during the same period last year.

Sindh has interestingly contributed the major share (56 percent) with total arrivals clocking at 3.79 million bales up a massive 132 percent from last year’s figures while Punjab’s arrivals clocked at nearly 3 million bales, recording an increase of 44.5 percent from SPLY.

 

[Bilal.]

.,.,.
Pakistan’s Cotton Arrivals have reached 6.79 million bales till October 31, 2023, reporting an 83.2 percent increase from 3.708 million bales during the same period last year.

Sindh has interestingly contributed the major share (56 percent) with total arrivals clocking at 3.79 million bales up a massive 132 percent from last year’s figures while Punjab’s arrivals clocked at nearly 3 million bales, recording an increase of 44.5 percent from SPLY.

Last year were flood destroyed the crop so it can’t be used as a benchmark. Let’s see if f wants it’s more than 2022 production.